Thursday, 12 December 2013

RETAIL SECTOR IN INDIA: ISSUES & CHALLENGES

This paper provides detailed
information about the growth of retailing industry in India. It examines the
growing awareness and brand consciousness among people across different
socio-economic classes in India and how the urban and semi-urban retail markets
are witnessing significant growth. It explores the role of the Government of
India in the industries growth and the need for further reforms. In India the
vast middle class and its almost untapped retail industry are the key
attractive forces for global retail giants wanting to enter into newer markets,
which in turn will help the India Retail Industry to grow faster. The paper
includes growth of retail sector in India, strategies, strength and
opportunities of retail stores, retail format in India, recent trends, and
opportunities and challenges. This paper concludes with the likely impact of
the entry of global players into the Indian retailing industry. It also
highlights the challenges faced by the industry in near future.

India
is the second fastest growing economy in the world. It is third largest economy
in the world in terms of GDP and fourth largest economy in terms of Purchasing
Power Parity. India presents a huge opportunity to the world at age, to use as
a hub. Standing on the threshold of a retail revolution and witnessing a fast
changing retail landscape, India is all set to experience the phenomenon of
global village. India is the “promised land” for global brands and Indian
retailers A “Vibrant economy”. India tops in the list of emerging market for
global retailer and India’s retail sector is expanding and modernizing rapidly
in line with India’s economic growth. The future is promising; the market is
growing, government policies are becoming more favorable and emerging
technologies are facilitating operations.

Retailing in India is gradually inching
its way toward becoming the next boom industry. The whole concept of shopping
has altered in terms of format and consumer buying behavior, ushering in a
revolution in shopping in India. Modern retail has entered India as seen in
sprawling shopping centers, multi-storied malls and huge complexes offer
shopping, entertainment and food all under one roof. The Indian retailing
sector is at an inflexion point where the growth of organized retailing and
growth in the consumption by the Indian population.

CONCLUSIONS

With organised
retail on the rise and increase in the disposable income retailing certainly
looks a promising option.